Hey all,

I am a NH and future USAF Reservist (once off Terminal from AD) and taking care of the open enrollment for benefits. I am contemplating the "optional life insurance" above the normal $676,000 provided. SGLI covers $400,000 at $29 a month. From what I can tell the optional Delta Life Insurance pays out much better. A policy that costs $29/month is upwards of $1M+ in addition to the "free" $676,000 coverage. Overall, the combination of the included free coverage plus the optional life insurance policy seems like a better deal than included life insurance policy plus the $400,000 worth of SGLI for $29/month.

One thing I am unclear on is Delta's policy with Military involvement Lets say something were to happen while on orders, would the Delta insurance pay out regardless? How about if it was an SGLI payout due to an off duty or Delta accident? Would that be a case to keep the SGLI? Any Delta/Mil guys think this through?

The best thing about SGLI is that it's an all risks policy. No reduced payouts for suicide, death in airplane crash, etc., like some other policies.

That being said, it's expensive. It's a government program, which means the insurance company that gets the contract gets it by greasing a lot of palms around DC. Then they sit back and rake the money in.

I do not work for Delta, so I don't know the details of their insurance. I would talk to someone in the benefits department and ask to see a copy of the actual policy. Maybe you could even talk to the actual company that underwrites the policy to get answers to your questions.

Please do not tie all your insurance to your jobs. Because the day you do not have those jobs due to furlough, military cutbacks or some other random event, you will find yourself without insurance. I would seek an outside insurance vendor that has no aviation clause or war clause and purchase from them. That is just me. I'm a little gun shy after the 2001 furlough.

If you are military looking for a good alternative to SGLI, look at AAFMAA. No war, aviation, or terrorism clauses and much cheaper.

good stuff, thanks!

Do not give up your SGLI. The other policies will always have exclusions including combat death clauses, private or military flying, scuba as a small example. If something happens to you in the first two years of taking out a policy expect your family to have to battle to get paid. My son in law was talked into dropping his VGLI and picking up insurance with Armed Forces benefit association because it was cheaper. Despite assurances it was a rollover from SGLI they have refused to pay. It's now 3 years since his death and my daughter and granddaughter face at least another year of expensive litigation to get paid.

If your Navy or Coast Guard, the Navy Mutual Aid is also a good alternative to VGLI / SGLI as there are no exclusions.

Important to note that VGLI (for retirees) is very expensive insurance that is really only practical if you have a medical condition at time of retirement that would prohibit you from getting normal life insurance. VGLI has no medical exclusions or difference in policy prices so it covers the generally uninsurable.

If in good health, there are many more affordable policies if you are willing to submit to a minor medical exam.

Sailing,

Horrible story, hope it gets resolved soon.

I have policies with both AFMAA and Navy Mutual (they insure all military branches), both cover pilots/war. On paper they look great, but I don't know anyone who has actually made a claim, so can't speak to how they are when it actually matters.

Looking at VGLI, as a recently retired guy, rates really aren't bad, and I know they'll pay. However, rates get a bit crazy as you get older--they aren't locked. I was able to lock in pretty reasonable rates with above companies. I don't know if they'll pay or fight if I die, but I can only go with best judgement.

By having SOME SGLI, you also get some level of traumatic injury protection, for things like a lost limb. So consider having 100k of SGLI (it's not all or nothing)...which is what I carry to supplement the 800k I have with the previously mentioned AAFMAA (also have 600k for my wife them).

I would also say that based on their 30 year level term price, the DoD survivor benefit plan is a pricey paycut.